Jeffery Oppong Peprah, Volkswagen Ghana’s Chief Executive Officer, says the introduction of a credit scoring system will help address car financing challenges in Ghana.
He said assessing buyers’ creditworthiness through a credit scoring database would help local assembling car companies have a flexible payment plan with prospective car buyers.
The CEO said this at the launch of Volkswagen’s new product in Accra.
The launch, attended by key personalities within the automobile industry, provided an opportunity for an in-depth assessment of the new products, including the Volkswagen Amarok, which has enhanced features.
Amarok, assembled in Ghana and specifically made for the terrains in the country, provided the required safety, power, and comfort for prospective buyers.
He said the credit scoring system must be complemented with a specialised loan scheme for vehicle purchasing.
He urged the Bank of Ghana to assist key players, notably the banks and locally assembled car companies, in introducing incentivised loans for vehicle purchasing of locally assembled cars.
Mr. Peprah said an incentive for loans for vehicle purchasing must ensure credit provided by financial institutions for vehicle purchasing had much lower interest rates than the prevailing interest rate.
“Now, when you go for a loan, you are paying about 30 per cent interest rates, which is not affordable, so we are looking at the regulator, the Bank of Ghana, to come up with an incentive rate that will be implemented purposely for locally assembled vehicles,” he said.
He said this would give people an appetite to go for these loans, and if they were creditworthy and they were earning, there could be deductions to support individuals to afford new vehicles.
Mr Peprah noted that integrating Ghana’s informal sector was key to addressing the skill gap in Ghana’s automobile industry.
He said Volkswagen technology had advanced in the automobile industry, noting that informal mechanics at automobile hubs, including Suame Magazines and Abbosey Okai, had adopted the new technology.
The CEO said this could be achieved through training and learning to give them insights into modern vehicle repairs and maintenance.
